True False Sequential investing is a way to measure risk not a way to manage risk.

True False The weighted average cost of existing capital is the change in the total returns needed to satisfy investors in light of new investment, divided by the amount of capital needed for the investment.

True False The rate paid on the funds raised by the corporation and then used for a new capital investment is the appropriate discount rate for you to use in capital budgeting regardless of the risk of the project.

True False A new investment should not be justified by the benefits of moving to an optimal capital structure. The benefit of moving to an optimal capital structure can be had by raising more of one type of capital and using the proceeds to retire another, without making new investments.